Nokia Networks on Monday declined to comment on speculation that it is exploring a potential sale of its Here mapping business.
Unnamed sources cited in a report by Bloomberg late last week claimed that the Finnish equipment maker has contacted a number of possible suitors including taxi-booking app maker Uber and private equity firms, while a group of German car makers has also shown interest. Nokia reportedly wants to sell Here so it can focus on its core networking business.
The report appears to contradict comments made by Nokia CEO Rajeev Suri at Mobile World Congress in March, when he discussed the synergies between Here and the company’s network technology.
Four out of five in-car navigation systems in Europe and N orth America use Nokia’s Here technology, and in 2014, 13 million cars were sold with Here maps on board.
Last year, the unit generated net sales of €970 million, up 6% on 2013, but a modest sum compared to the networks division, which turned over €11.2 billion. Here also turned in a €1.24 billion operating loss in 2014, driven primarily by a €1.21 billion impairment charge.
According to Bloomberg, the division is valued at approximately €2 billion. Nokia is working with a financial advisor, and may decide against a sale if it does not receive an adequate offer.
A Nokia spokeswoman declined to comment on the rumour when contacted by Total Telecom.
